28th January 2009
The government will guarantee loans worth up to £2.3 billion to help support Britain's car industry under new plans announced by business secretary Lord Mandelson.
Speaking in the House of Lords, the minister said the government would provide guarantees to unlock as much as £1.3 billion in loans from the European Investment Bank (EIB) for lower carbon initiatives.
It will also underwrite up to £1 billion more in lending for non-EIB projects, he added.
The government's package includes additional funding for Train to Gain to help employers develop the skills of auto industry workers.
Outlining the plans, Lord Mandelson said it is essential to support an industry that employs around one million people from manufacturing to retailing and contributes some £10 billion to the economy in order to put it at the forefront of lower carbon technology.
"This industry is not a lame duck and I am not proposing a bail-out," he said.
According to recent figures from the Society of Motor Manufacturers and Traders, UK car production fell by 47.5 per cent in December.
Source: http://www.londonstockexchange.com
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